Bankruptcy – All You Need To Know

By debtconsolidation-us.org – One other thing you could do is get a debt relief order. You can only apply for such an order if you have income and property below a particular amount. This might be a better alternative to bankruptcy. After going through this article, you’d know for sure if you want to go and file for bankruptcy for help or not.

Going Bankrupt

Advantages

Once you receive the bankruptcy order, you could always go for a fresh start just after a year or so. Another thing off of your chest will be the pressure of dealing with your creditors. Also, you are allowed to keep things like household stuff and enough amount of money to live on with. Once a bankruptcy order is passed, creditors can’t do anything in the department of law. They can’t sue you for not returning their money. All in all, the money that you used to owe is written off in most of the cases.

Disadvantages

First of all, to apply to go bankrupt, you would have to pay a handsome fee. If you have an income that is high enough, you might be asked to repay your debts in around 3-5 years. Taking out credit will become more difficult as it wasn’t difficult enough already. If you own property or home, it might be sold. All the luxury items that you own might be sold like your cars and precious items. Your pension might be taken if your age qualifies. Professionally you might face some trouble as some companies do not hire bankrupt people. Your business might also be sold off. Also, going bankrupt can affect your immigration status and it will be published publicly.

What happens after bankruptcy?

Normally after a year, your bankruptcy will end. The officials will let you know when it’s over. Almost all the debts that you did not pay will be written off except debts like student loans and court fines, which can never be canceled.

Even after ending your bankruptcy, you could face restrictions for as much as 15 years, which will restrict your financial activities. This usually happens when you do not behave with the officials or keep on getting debts knowing that you would not be able to pay them back.

How to go for it

Before you go for it, there are some things you need to know. Make sure you have enough cash for daily expenditures as your assets will be frozen once the order is made. If your application is accepted, all your money will be under the control of an official receiver. Your assets may be sold to pay off some of your debts. Also, your name and bankruptcy details will be added to the register of bankruptcies.